U.S. District Judge Ewing Werlein of Houston on Monday granted a request by Steven Cochell, a Stanford attorney, to dismiss the case filed last month. Stanford had sought $7.2 billion in damages.

The case was filed two years after the SEC accused the deposed Stanford Financial Group principal of leading a $7 billion investment-fraud scheme. Stanford, who was indicted on parallel criminal charges in June 2009, has denied all allegations of wrongdoing.

"Plaintiff concludes that the claims in this action will be preserved without the pursuit of this case at this time," Cochell said in his filing last Friday.

Stanford had alleged the federal government used more than $51 million of his assets to pursue the cases against him. "The agents have engaged in unfair, abusive law-enforcement methods and tactics," violating Stanford's rights under the U.S. Constitution, according to the complaint.

Among the 12 individual defendants named in the lawsuit were lead prosecutors Paul Pelletier and Gregg Costa and lead SEC lawyer Stephen Korotash. Stanford didn't directly sue any agency of the federal government.

Laura Sweeney, a Justice Department spokeswoman, declined to comment, citing a gag order imposed in the criminal case by U.S. District Judge David Hittner. Kevin Callahan, an SEC spokesman, didn't immediately reply to voice-mail messages seeking comment.